Board of Sterling and Wilson Renewable Energy to meet on Sept 27 for fundraise
Sterling and Wilson Renewable Energy Ltd (SWREL) will meet on September 27 to consider a proposal to raise funds, the company informed the stock exchange today.
The company has said that the board will meet to consider and evaluate a proposal for raising funds by issuance of bonds or equity. It would consider any other securities such as preferential issue on a private placement basis, qualified institutions placement, rights issue or a combination of these, the notice said
ET reported on September 6 that Sterling and Wilson is considering an equity share sale to repay debt maturing this fiscal year.
The company is considering an option to raise Rs 1500 crore from qualified institutional investors, ET reported.
The power generating company, wherein a Reliance Industries-linked entity has picked up 40% equity in 2022, had payment obligations of ₹1,000 crore by December 2023, according to a rating report by Acuite dated August 29.
The fundraising aims to make SWREL a debt-free company, thus improving its valuation. The company has a market cap of ₹6800 crore, and its shares closed at ₹358, down 1.08% over the previous day at the Bombay Stock Exchange.
A few months ago overseas clients invoked two bank guarantees amounting to Rs 390 crore, alleging improper execution of a project undertaken by its overseas subsidiary Sterling and Wilson International Solar FZCO.
